After credit rating, panel calls for economic stability

The private sector is urging the government to maintain Thailand's economic stability following S&P Global Ratings' reaffirmation of the country's sovereign credit rating.

The Joint Standing Committee on Commerce, Industry and Banking (JSCCIB) called on the government to implement targeted policies while maintaining strict fiscal discipline to sustain the stability and resilience of the Thai economy.

S&P's latest decision to affirm Thailand's sovereign credit rating at BBB+ with a stable outlook follows Moody's recent reaffirmation of the country's rating at Baa1 with a stable outlook. These assessments reflect international investors' confidence in Thailand's ability to manage its macroeconomic and fiscal policies prudently.

Thailand's consistently strong external financial position provides a solid buffer against global economic shocks, geopolitical uncertainties and major shifts in the trade landscape.

"The JSCCIB believes the confirmation from these agencies demonstrates Thailand's economic fundamentals remain strong and stable," said the panel.

The committee recommended the government prioritise investments that generate strong economic returns and broad-based benefits throughout the supply chain, while also urging authorities to reduce blanket subsidy schemes.

"The government should scale back broad subsidies that may encourage long-term dependence on state support, while accelerating regulatory reforms to remove obstacles to investment and business operations," noted the JSCCIB.

In addition, the panel strongly supports Thailand's efforts to join the Organisation for Economic Co-operation and Development, viewing membership as an important benchmark for raising national standards in the rule of law, governance, transparency and open government.

The committee also applauds efforts to upgrade the country's key industries through collaboration with stakeholders, including international organisations such as the World Bank. These initiatives demonstrate Thailand is systematically advancing its economic transformation towards a growth model driven by value creation, productivity gains and high-quality job creation.

This approach is consistent with the "Reinvent Thailand" framework and is expected to strengthen investor confidence, while enhancing the credibility of Thailand's economic reform agenda on the global stage, said the JSCCIB.

The group said it is ready to support the government in advancing these reforms through investment, supply chain development, small and medium-sized enterprise promotion, and close cooperation among the private sector, financial institutions, capital markets and the public sector.

CAPITAL MARKET

Asadej Kongsiri, president of the Stock Exchange of Thailand (SET), said S&P's rating sends a positive signal that reflects the country's financial stability and robust international reserves.

Thailand's high level of foreign exchange reserves provides a buffer against external volatility, while government stability remains a key factor supporting policy continuity, particularly in driving economic restructuring and implementing long-term investment projects under the national strategic plan, he noted.

The credit rating should strengthen investor confidence and support continued capital inflows into the Thai stock market, said Mr Asadej.

Listed companies should be able to maintain competitive funding costs in international markets, which is beneficial to business expansion and the long-term development of Thailand's capital market, he said.

"The maintenance of Thailand's credit rating and stable outlook is a positive factor for the economy and capital market, bolstering investor confidence and supporting sustainable business growth over the long term," Mr Asadej said.